GnuCash User Manual
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# Creating a "commodity"

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Gnucash represents national currencies, stocks, mutual funds, and all other tradable commodities using a unified framework. In this dialog, you will specify the properties of a new commodity.

The full name of the commodity is a recognizable name such as "US Dollars" or "IBM Common Stock".

The symbol or abbreviation for the commodity is the ticker symbol (for stocks), ISO currency symbol (for national currencies), or other unique abbreviation for the commodity. If the commodity is traded on any public exchange, it is important to use the same identifier used on that exchange.

The type of a commodity is the grouping or namespace in which it exists. For example, national currencies are of the ISO4217 type. ISO-4217 is an international standard which defines unique three-letter symbols for each currency. Other types include AMEX, NYSE, NASDAQ, and EUREX for stocks traded on those exchanges, and FUND for mutual funds. If your commodity is not of one of these types, you can create a new type by typing it in the box.

The commodity's code is any numeric or alphanumeric code that is used to identify the commodity. The CUSIP code, for example, is a unique identifying numeric string that is associated with every stock, bond, mutual fund, and most kinds of tradable options, futures, and commodities. This code is not required.

The fraction traded is the smallest tradable unit of the commodity, expressed as a fraction of a single nominal unit. For US Dollars, for example, the fraction traded is "1/100", because bank balances and currency are counted to 1/100 of a dollar. This value is used as a default accounting resolution for accounts denominated in the security, but can be overridden if a particular account's books need to be kept to a different resolution. For example, stock ownership may be reckoned to 1/1000 of a share by some brokerage houses, though actual transactions in the stock are in integer numbers of shares (the fractional share ownership is an "on paper" accounting trick of the brokerage house).

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